Affordability at its highest since 2003
Share
Some 58% of UK homes are affordable to buyers on an average income, according to research from Zoopla.co.uk.
The property website has calculated a UK affordability rate based on average incomes and average regional house prices, measured against current mortgage rates and an LTV of 75%.
A home is considered affordable if one third of the average income can cover mortgage repayments.
Zoopla.co.uk found that the average UK income earner can afford to buy 58% of all home, up from a market peak in 2007 when 34% of homes were affordable.
Bradford came out as the most affordable city in the UK with four out of five homes judged as affordable for residents earning an average local income.
London was the least affordable, as less than one third of homes are affordable for residents in the capital.
Nicholas Leeming, commercial director of Zoopla.co.uk, says: “Affordability rates have improved substantially over the past couple of years as a result of lower mortgage rates and falling house prices that have now begun to stabilise.”
